Introduction
Property ownership is one of the most significant investments in Nigeria, and ensuring that your property title is genuine is a critical step in securing your investment. Unfortunately, with the growing number of fraudulent activities in the real estate sector, property buyers and investors are at risk of falling victim to scams. To protect yourself, it’s essential to know how to verify property titles and spot red flags that might indicate fraud.
Why Checking Property Titles Is Crucial
Before diving into the process of verifying a property title, it’s important to understand why title verification is essential. A genuine property title ensures:
- Legal Ownership: The rightful owner of the property has legal documentation proving their ownership, protecting you from future disputes or claims.
- Smooth Transaction Process: When buying or investing in real estate, a verified title ensures that you are making a legitimate transaction and that no fraudulent activities are involved.
- Financial Protection: With a valid title, you can use the property as collateral for loans and safeguard your financial interests.
- Avoid Legal Issues: A genuine property title avoids the risk of losing the property or getting caught in lengthy legal battles with disputing parties.
Without proper verification, you risk purchasing a property with a fraudulent title, which may result in legal complications, financial loss, and even the seizure of your property.
The Importance of Title Verification in Nigeria
Nigeria’s real estate market is one of the largest in Africa, attracting both local and foreign investors. However, property fraud is rampant, especially in urban areas. To ensure the property you’re investing in is free from legal encumbrances, you must verify the title.
In Nigeria, there are two main types of property titles:
- Certificate of Occupancy (C of O): This title is issued by the government under the Land Use Act of 1978 and is typically applicable to land in urban areas.
- Deed of Assignment: This is a transfer document used when property is sold by the owner to a buyer. It can be registered in the land registry.
Both types of titles need to be checked thoroughly to confirm their legitimacy. The verification process involves confirming that the property is registered with the relevant government authorities, that the documents are authentic, and that no encumbrances exist on the title.
Steps to Verify the Authenticity of a Property Title in Nigeria
1. Obtain the Property’s Title Documents
The first step in verifying a property title is to gather all the relevant documents. These documents typically include:
- Certificate of Occupancy (C of O) or Deed of Assignment
- Survey Plan of the property
- Receipts of Payment of Land Use Charges (if applicable)
- Tax Clearance Certificate (if applicable)
If the property has a title deed or C of O, request these documents from the seller. If the property is under a lease or mortgage, make sure you get the full chain of title documents to ensure the property’s history is clear.
2. Cross-Check the Title Documents at the Land Registry
The Nigerian land registry is the primary body responsible for registering land titles. To verify if a property title is genuine, cross-check the documents at the appropriate land registry. The two key land registries in Nigeria are:
- Lagos State Land Registry
- Federal Capital Territory (FCT) Land Registry
The land registry will confirm whether the title has been registered in their system. To cross-check the title, you can visit the registry in person or use the online platforms (in some states) that allow property verification.
3. Confirm the Property’s Status with the Local Government
In Nigeria, property titles are also registered with the local government authority, especially if the land is within a local council. Confirming with the local government ensures the land is not under acquisition, and that there are no issues related to zoning or land use.
In Lagos State, for instance, the Lagos State Land Use Charge office should be contacted to confirm if the land has any encumbrances or unpaid dues. This process ensures that the title is not only genuine but also free from liabilities.
4. Check the Survey Plan
A Survey Plan is a crucial document for verifying property titles in Nigeria. It shows the exact measurements, location, and boundaries of the property. Verify that the survey plan matches the information provided in the title documents.
Some red flags to look for when verifying the survey plan include:
- Inconsistent Measurements: If the measurements do not match with the documents or the physical land, the title might be fake.
- No Registered Surveyor’s Signature: A legitimate survey plan should be signed by a licensed surveyor and stamped with the appropriate government authority.
5. Investigate the Ownership History
Another critical part of verifying a property title is confirming the chain of ownership. If the property has changed hands multiple times, ensure that all the necessary documents, including deeds of assignment, have been properly executed and signed by the relevant parties.
A clear ownership history reduces the risk of disputes and fraudulent claims. Also, you should ensure that the person selling the property is the rightful owner, and that the title has not been encumbered by legal disputes such as unpaid debts or mortgages.
6. Seek Legal Assistance from a Real Estate Lawyer
It’s advisable to engage a property lawyer to assist you with title verification. Property law in Nigeria is complex, and a legal expert can help you navigate the verification process. They can also check if the property is subject to any disputes or litigation.
Legal professionals will verify the authenticity of title documents, survey plans, and conduct searches at the relevant authorities. A lawyer’s assistance provides a safety net to ensure the property title is genuinely free from legal challenges.
7. Perform a Title Search at the Court Registry
In some cases, land titles may be subject to ongoing court cases or legal disputes. It is crucial to perform a title search at the court registry to ensure that the property you intend to buy is not involved in any litigation. A court search will reveal if the property has any pending legal issues, including disputes over ownership or encumbrances.
Red Flags to Watch Out for When Verifying Property Titles
While verifying property titles, watch out for the following red flags that may indicate fraudulent activity:
- Missing or Inconsistent Documents: If key documents such as the C of O or Survey Plan are missing, incomplete, or contain discrepancies, the title may be fake.
- Seller’s Refusal to Provide Documents: A legitimate property seller should willingly provide the necessary documents for verification. A refusal may indicate fraud.
- Unclear Ownership History: A property with a murky or incomplete ownership history is more likely to have a fraudulent title.
- Unregistered Survey Plans: As mentioned, a genuine survey plan should be signed and stamped by the appropriate authorities. Unofficial or unsigned plans are major red flags.
- Land Under Acquisition: If the property is located on land acquired by the government, it is not legally available for sale.
How to Avoid Title Fraud in Nigeria
To minimize the risks of property title fraud, consider the following tips:
- Engage a Property Lawyer: Always work with a lawyer specializing in property transactions. A legal expert can assist you with verifying title documents and ensuring that the property is free from encumbrances.
- Use a Trusted Real Estate Agent: Work with a reputable real estate agent who can guide you through the purchase process and ensure that all documents are in order.
- Conduct Due Diligence: Do your own research on the property, the seller, and the title documents before making any payments.
- Don’t Rush the Process: Take your time to verify the authenticity of all documents and confirm ownership before committing to any purchase.
Conclusion: Protecting Your Investment
Verifying a property title is an essential part of ensuring that you make a secure and legitimate property investment in Nigeria. By following the steps outlined above, you can reduce the risk of falling victim to property fraud and protect your investment.
If you’re unsure about how to proceed with title verification, Chaman Law Firm is here to help. Our experienced team of real estate lawyers can assist you with thorough due diligence, legal advice, and the verification of property titles to ensure that your investment is secure.
Protect your real estate investments with expert legal assistance. At Chaman Law Firm, we provide professional services for title verification, due diligence, and all other aspects of property law. Contact us today to secure your investment and avoid property fraud.
Visit www.chamanlawfirm.com or Call us at 08065553671 or email us at info@chamanlawfirm.com to schedule a consultation.
Our offices are conveniently located in Lagos, FCT Abuja, Ogun State, and the UK. We are readily available to assist you with your legal needs.
Let us help you ensure that your property transactions are safe, legal, and protected.